BASE METALS: Copper Follows US Stocks To Higher Ground

Sep 08, 2011 NEW YORK (Dow Jones)--Copper futures rebounded from earlier losses as stronger stock markets emboldened traders to return to risky markets like commodities.

The most actively traded contract, for December delivery, was recently up 1.60 cents, or 0.45%, at $4.1480 a pound on the Comex division of the New York Mercantile Exchange. The contract had traded at a low of $4.0865 earlier Thursday.

U.S. benchmark stock market indexes strengthened in late morning trade, with the Standard & Poor's 500 index gaining 5.06 points, or 0.4%, to trade at 1203.68 points.

Copper futures tend to move in tandem with stocks as both are considered leading indicators of economic growth. The red metal is used in everything from cell phones and laptops to cars and household plumbing, and demand for such products tends to increase when economic activity is expanding.